Belgarath Posted August 23, 2012 Report Share Posted August 23, 2012 I have so little contact with Governmental Plans that I'm unsure of what I think I know. I have very little information to go on here, other than a brief conversation. The new director of a governmental entity, which has a 457 plan and a 401(a) profit sharing plan, wants to make elective deferrals to the profit sharing plan. He said his prior governmental employer allowed him to do this. That's the sum of the information I have at this point. His prior plan may possibly have been a grandfathered 401(k) plan. Let's assume that the current 401(a) plan is post-TRA 86 and is not a "grandfathered" 401(k) plan. I think the current plan could allow employee voluntary after-tax contributions, and that these would count against the 415 limit. I think the current plan canot allow "deferrals" in the normal sense. I think a governmental plan may provide for mandatory employee contributions, and "pick up" the mandatory contribution under 414(h). Agree/disagree? Is there any basis for allowing "deferrals to a governmental 401(a) plan, including a money purchase plan, other than as I mentioned above? Thanks. Link to comment Share on other sites More sharing options...
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